A company planned to produce 7,500 units of its product Thunder during the month of April. The actual production was 8,000 units. The standard cost card for a unit of Thunder included Fixed overheads of 3 hours @ £20 per hour. The actual hours worked for the month was 25,200. Calculate and explain the following variances: i. The Fixed Overhead Volume variance ii. The Fixed Overhead Volume Efficiency variance and iii. The Fixed Overhead Volume Capacity variance
A company planned to produce 7,500 units of its product Thunder during the month of April. The actual production was 8,000 units. The standard cost card for a unit of Thunder included Fixed overheads of 3 hours @ £20 per hour. The actual hours worked for the month was 25,200. Calculate and explain the following variances: i. The Fixed Overhead Volume variance ii. The Fixed Overhead Volume Efficiency variance and iii. The Fixed Overhead Volume Capacity variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company planned to produce 7,500 units of its product Thunder during the month of April. The actual production was 8,000 units.
The
The actual hours worked for the month was 25,200.
Calculate and explain the following variances:
i. The Fixed Overhead Volume variance
ii. The Fixed Overhead Volume Efficiency variance and
iii. The Fixed Overhead Volume Capacity variance
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